$240 billion. This is the volume that the global secondary market amounted to in 2025: 48% more than the previous year, a historic record and the first time that this industry has broken the $200 billion barrier. To put it into perspective, just over a decade ago, in 2013, this market barely moved $26 billion.
It is worth explaining what the secondary market is because, despite its size, it remains largely unknown to the individual investor. When we invest in a private equity fund, private debt or infrastructure, we make a long-term commitment; usually ten years or more, with little liquidity along the way. The secondary market is precisely where this lack of liquidity finds an outlet: it allows one investor to sell their stake in a fund prior to maturity, and another to buy it, usually at a discount on the net asset value.
WHY HAS IT GROWN SO MUCH?
The answer lies in the scarcity of allotments. The high interest rate environment and a sluggish exit market have caused funds to return capital to their participants at a historically low rate. Faced with this lack of liquidity, many institutional investors have turned to the secondary market not so much out of necessity but for active portfolio management: rebalancing positions, reducing overallocations, or rotating towards new opportunities. The secondary market has ceased to be an escape route and has become a portfolio building tool.
TWO ENGINES: LP-LED and GP-LED
The market is divided into two large blocks. Investor-led transactions (LP-led), in which a participant sells their position, totalled $125 billion, 52% of the total. And those led by managers (GP-led) amounted to $115 billion, 53% more than in 2024. In this second section, the main feature is the continuation vehicle (CV), through which an asset manager transfers one or more assets from an old fund to a new one, allowing those who wish to exit to do so and those who wish to stay in to continue supporting the best companies. It is one of the most relevant trends in the sector.
MONITOR THE PRICE
The buying appetite is enormous. Capital specifically dedicated to secondary investments reached a record $327 billion. When adding traditional investors and available leverage, the total purchasing power is around $477 billion. All that demand has narrowed the discounts: the average portfolio price stood at 87% of the net asset value, with buyout strategies trading at 92%. The more expensive it is to buy, the smaller the safety net. The key here is discipline: buying cheap doesn’t guarantee anything, but buying expensive does have its consequences.
ADVICE, THE KEY FACTOR
In secondary markets, as in the rest of the private markets, the dispersion of results is enormous and the difference in profitability between managers is vast. Therefore, the real value lies not only in accessing the asset class, but in how it is incorporated into the portfolio. This is where professional advice becomes crucial: deciding what weight secondary investments should have versus primary investments, how to combine both to smooth out the J-curve, which maturities and strategies to enter, and through which managers to do so. The advisor also assesses the level of illiquidity commitment that each investor can bear, plans the timing of capital calls and distributions, and fits private markets into a coherent and disciplined wealth strategy. In an asset class where the best managers are often the least accessible and where a portfolio assembly error takes years to pay down, having professional support makes the difference between seizing the opportunity and getting stuck in the wrong position.
In short, secondary markets have established themselves as one of the most dynamic components of private markets. They offer a more diversified entry point, with already invested portfolios, a lower J-curve, and visibility over assets that primary investments just don’t allow. But, like the entire industry, they don’t explain themselves: they require professionalisation, analysis and, above all, good advice that knows how to interlace them into each investor’s portfolio. The $240 billion is not just a record; it is a sign that an increasing part of the real economy is managed, bought and sold outside of listed markets, and that accessing it with the right support is more important than ever.
Funds People 06.07.26